U.S. Energy Department Finalizes LNG Study, Finds Exports Serve Public Interest

The U.S. Energy Department on May 20 finalized its 2024 study of liquefied natural gas exports, releasing its response to comments and concluding that the complete record from the study supports the view that exporting LNG from the U.S. is in the public interest. This action marks an important step towards resuming consideration of applications to export LNG to non-Free Trade Agreement countries, following the Biden administration’s pause on export permit reviews.

The pause did not affect exports that had been authorized or the ability to supply allies in Europe, Asia, or other recipients of authorized U.S. exports. Analysts cautioned that further expansion of LNG exports could increase domestic energy costs and undermine climate goals.

The study was released at the end of the Biden administration during December 2024 and had a 60-day public comment period. The 2024 LNG Export Study: Energy, Economic, and Environmental Assessment of U.S. LNG Exports provides an updated overview of the probable impacts of U.S. LNG exports on the domestic economy, U.S. households, and communities that live in close proximity to areas where natural gas is produced or exported; domestic and international energy security, including impacts on U.S. trading partners; and the climate and environment. The study initially found that unregulated exports of LNG would increase wholesale domestic natural gas prices by more than 30 percent and could increase costs for the average U.S. consumer by more than $100 per year by 2050.

The updated 2024 study, following the comment period, finds that LNG supports the U.S. economy, strengthens relationships with trading partners and allies, and enhances national security. The department’s analysis finds that the U.S. has a strong natural gas supply that is adequate to fulfill increasing levels of exports while abating impacts to domestic prices, and increasing LNG exports elevates U.S. GDP and creates job opportunities while improving the nation’s trade balance. Moreover, higher U.S. LNG exports increase domestic and international global security with no apparent effect on global greenhouse gas emissions, according to the study.

The department concludes from both the study and comments that U.S. LNG exports are in the best interest of the U.S. public. The department will go ahead with issuing final orders on pending applications to export U.S. sourced natural gas as LNG to non-free trade agreement countries.